The Benefits of Reverse Mortgage Counseling
The benefits of reverse mortgage counseling is growing. In June, the Department of Housing and Urban Development awarded the new funding, in the form of $40 million, to housing counseling agencies in hopes of sustaining HUD-approved counseling.
The funding went toward helping new and existing home buyers manage their money as well as achieving financial security in the present and in the future.
In the past, I’ve had clients complain about having to sit through reverse mortgage counseling but I think that it is highly beneficial to homeowners looking to apply for a reverse mortgage.
For example, reverse mortgage counseling takes away the possibility that a fraudulent mortgage broker–who will take advantage of a senior borrower–because every document is explained and disclosed during counseling. Homeowners are made aware of what documents they are signing, what a reverse mortgage entails and when their loan will become due.
Reverse Mortgage Counseling has become more in depth and complex but this is better for the borrower, which is a good thing.
In the past, the reverse mortgage’s mandatory Federal Housing Administration counseling was nothing more than a counselor spending 30 to 45 minutes explaining how the program works. This type of counseling never considered if the borrower actually knew what they were getting into. New funding has allowed counseling to get much more in depth, ensuring that the homeowner understands every detail before they move forward with the reverse mortgage application process.
In addition, at PS Financial Services, a reverse mortgage company in Florida, we explain and disclose every document in the application a second time.
We’re just not comfortable having clients sign away without at least summarizing what their reverse mortgage counselor has gone over. Even if my clients find this tedious, I want them to fully comprehend the process and the only way for that to happen is to sit down with them and explain what they are signing.
Interested in a reverse mortgage or simply want more information? Give PS Financial Services a call at (888) 845-6630 or email us at info@PSReverseMortgage.com. We do not pressure those who inquire, we are simply here to help make your reverse mortgage process run as smooth as possible.
Click here for more information about the elimination of the reverse mortgage program as we know it: